Enterprise Structure

In this section, you will learn how to portray the specific organizational structure of your business in the R/3
System.

To help you portray your company structure, different Accounting, Logistics and Human Resources
organization units are provided.

First analyze the structures and procedures in your company, and then match them to the SAP structures.
There are various organization elements defined as examples in the standard version. Normally these would
not cover all your needs. Extend the elements as required.

During the clarification stage, work with the structures delivered by SAP. In order to obtain a high degree of
indentification and acceptance from project members and user departments from the start, you may have to
change some of SAP's terminology.

You should limit the number of persons authorized to maintain organization elements. Define the
authorization profiles accordingly. As soon as your organization units are ready, access should be locked so
that no other changes can be made.

Note

The definition of organization units is a fundamental step in your project. It is a critical factor in how the
project will be structured.

You should not use more organization units than necessary. Only use new organization units if this is
required by the existing data structures.

Once you have decided on an organizational structure it is not easy to change it.

1)Define company
In this step you can create companies. A company is an organizational unit in Accounting which represents
a business organization according to the requirements of commercial law in a particular country.

You store basic data for each company in company definition. You only specify particular functions when
you customize in Financial Accounting. Company G0000 is preset in all foreign key tables.

In the SAP system, consolidation functions in financial accounting are based on companies. A company can
comprise one or more company codes.

When you create a company you should bear in mind the following points relating to group accounting:

• If your organization uses several clients, the companies which only appear as group-internal
business partners, and are not operational in each system, must be maintained in each client. This
is a precondition for the account assignment of a group-internal trading partner.

• Companies must be cataloged in a list of company IDs which is consistent across the group. The
parent company usually provides this list of company IDs.

• It is also acceptable to designate legally dependent branches 'companies' and join them together
as a legal unit by consolidation.

Recommendation
SAP recommends that you keep the preset company ID G00000 if you only require one company. In this
way you reduce the number of tables which you need to adjust.

Activities

Create your companies.

Further notes

All company codes for a company must work with the same operational chart of accounts and fiscal year.
The currencies used can be different

1.1)Definition: chart of accounts

Financial Accounting (FI)

A classification scheme consisting of a group of general ledger (G/L) accounts.

A chart of accounts provides a framework for the recording of values to ensure an orderly rendering of
accounting data. The G/L accounts it contains are used by one or more company codes.

For each G/L account, the chart of accounts contains the account number, the account name, and technical
information.

A chart of accounts must be assigned to each company code. This chart of accounts is the operative chart
of accounts and is used in both financial accounting and cost accounting. Other charts of accounts include:

• Country-specific charts of accounts -

These are structured in accordance with legal requirements of the country in question

• Group chart of accounts -

This is structured in accordance with requirements pertaining to Consolidation.

SAP Business One (SBO)

The index of all general ledger accounts used by one or more companies.

1.2)Definition: fiscal year

Financial Accounting (FI)

A period of usually 12 months, for which the company produces financial statements and takes inventory.

A fiscal year need not correspond to the calendar year.

Under certain circumstances, fiscal years containing fewer than 12 months are also permitted (short fiscal
year).

1.3)Definition: business organization

Consolidation (FI-LC)
An economic system (or unit) that has as its purpose the extraction, production, or distribution of goods or
services.

Its internal structures can vary greatly, depending on the requirements placed by accounting, logistics, and
human resource management.

Outwardly, a business organization can take the form of a single legal entity (a company) or as a group of
several legal entities (corporate group).

2)Financial Accounting Global Settings

In the following activities, you will make the global settings for the central objects in Financial Accounting
(i.e. company code, fiscal year document

Definition: company code

Financial Accounting (FI)

The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts
can be drawn up for purposes of external reporting.

This includes recording of all relevant transactions and generating all supporting documents required for
financial statements.

Financial Accounting (FI)

The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for
purposes of external reporting.

The process of external reporting involves recording all relevant transactions and generating all supporting
documents for financial statements such as balance sheets and profit and loss statements.

Classification

Business object

Definition: fiscal year

Financial Accounting (FI)

A period of usually 12 months, for which the company produces financial statements and takes inventory.

A fiscal year need not correspond to the calendar year.

Under certain circumstances, fiscal years containing fewer than 12 months are also permitted (short fiscal
year).